Breaking News! Dongfeng Motor Corporation Group Delists!
On the evening of August 22, an announcement from the Hong Kong Stock Exchange sent shockwaves through the entire automotive industry. Dongfeng Motor Corporation Group . (0489.HK) announced the launch of a groundbreaking capital operation: its high-end new energy brand,VOYAH, will list on the Hong Kong Stock Exchange via an introduction listing, while the parent company, Dongfeng Motor Corporation Group., will simultaneously complete its privatization and delisting. The news sparked a strong reaction in the capital markets. The price of Dongfeng Motor Corporation Group.'s American Depositary Receipts (ADRs) surged by over 91% within an hour, closing with an 87.69% increase at USD 61.
According to the announcement, this transaction adopts an innovative combined model, with the two core components mutually dependent and advancing in tandem.
In the first phase, Dongfeng Motor Group Co., Ltd. will distribute its 79.67% equity stake inVOYAH, to all shareholders in proportion to their respective shareholdings. Following the distributionVOYAH, will be listed on the Hong Kong Stock Exchange via an introduction listing. An introduction listing does not involve the issuance of new shares or fundraising; it merely involves listing existing shares for trading on the exchange. In the second phase, Dongfeng Automobile's wholly-owned subsidiary in China—Dongfeng Automobile Group (Wuhan) Investment Co., Ltd.—will act as the acquiring entity, paying equity consideration to the controlling shareholder of Dongfeng Group Co., Ltd. and cash consideration to other minority shareholders, thereby achieving 100% control over Dongfeng Group Co., Ltd. The overall acquisition price per share is HKD 10.85, with a cash consideration of HKD 6.68 per share and a VOYAH, equity consideration of HKD 4.17 per share. The overall valuation of VOYAH, Automobile ranges between RMB 36.786 billion and RMB 41.884 billion.
The fundamental reason behind Dongfeng Group Co., Ltd.'s decision to delist through privatization lies in its long-term severe undervaluation. As of July 31, 2025, the company's total market capitalization stood at just 39.12 billion Hong Kong dollars, with a closing price of 4.74 Hong Kong dollars per share, resulting in a price-to-book ratio (PB) as low as 0.25 times. This indicates that the capital market values the company at less than a quarter of its net assets. Constrained by this situation, Dongfeng Group Co., Ltd. has not conducted any equity-based refinancing since its listing and has effectively lost the financing functionality of its H-share listing platform. “As a holding company, Dongfeng Group Co., Ltd. has a diverse range of assets and a complex valuation logic, making it difficult for investors to fully uncover its investment value,” admitted an insider from Dongfeng Group. Despite the strong performance of VOYAH Automobile, its value has not been adequately reflected in the group's overall valuation.
The interim results for the first half of 2025, released on the same day, revealed the transformation challenges facing Dongfeng Group: in the first half of the year, the group sold approximately 823,900 vehicles, a year-on-year decrease of 14.7%; achieved revenue of 54.533 billion yuan, a year-on-year increase of 6.6%; however, net profit attributable to shareholders of the listed company was only 55 million yuan, a year-on-year plunge of 91.96%. The decline in performance was primarily attributed to two factors: the continued downturn in the joint-venture non-luxury brand market, resulting in sales declines of 23.5% and 37.4% for Dongfeng Nissan and Dongfeng Honda, respectively; and increased investments in R&D, channels, and marketing for the Group's independent brands. In stark contrast,VOYAH Automobile demonstrated strong performance. In 2024, Lancer delivered 85,697 vehicles, up 70% year-on-year; from January to July 2025, cumulative sales reached 68,263 vehicles, up 88% year-on-year, with monthly sales exceeding 10,000 units for five consecutive months. In July, 12,135 vehicles were delivered, setting a new monthly record.
As Dongfeng's premium domestic new energy brand, the spin-off of VOYAH Automobile is seen as a key step in “value sharpening”: Financing and brand upgrading: After an independent listing,VOYAH can expand its financing channels, enhance its international brand image, and accelerate its overseas expansion. In 2024, its delivery volume reached 85,697 units, up 70% year-on-year, with losses significantly narrowed, demonstrating market competitiveness. Dongfeng accelerates integration: The privatization and delisting will remove regulatory constraints on listed companies, enabling Dongfeng to more flexibly advance internal resource integration (such as restructuring the internal combustion engine and new energy vehicle segments), technological investments, and mixed-ownership reform explorations. State-Owned Enterprise Reform Model: In recent years, state-owned enterprises listed on the Hong Kong Stock Exchange, such as China International Marine Containers and COFCO Packaging, have successively undergone privatization. However, Dongfeng's “VOYAH listing + group delisting” dual-track approach is a first in the industry, providing a new model for “asset optimization and shareholder returns” for similar enterprises.